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Defensive Line: Protecting Your Small Business From Fraud

Fraud is one of those serious events that no business ever thinks will happen to them. They are aware it could, but they never think it will. It’s sort of luck the exact opposite of winning the lottery. However, small and medium businesses are much more likely to be hit by fraudulent activities because they are easier targets, and the typical amount they are affected by is around $150,000. But amongst all this doom and gloom there is some good news; it is relatively easy to protect yourself. All it takes is a little investment, a few procedures and, voila, your defense is up. Cyber Threat The main source of fraud now occurs online. It is just part of the digital world we now operate in. Unfortunately, each business has different weaknesses, meaning there is no universal answer or place to focus. That is why we recommend you conduct a cyber threat analysis to see where your weakest link is and how you can better build up your defense. It could be your firewall is too weak, passwords are too generic, email accounts are being targeted or any number of things. So know the problem and then deal with it accordingly. Employees This is often the weakest link in a business’ security features because human error accounts for a huge amount of vulnerability. That is why it is so important that you train your staff effectively and often when it comes to maximizing your security effort. Teach them about strong passwords and having any device they bring to work encrypted. It is also worth you performing thorough background checks and vetting procedures to ensure there is no history that could put your position in jeopardy. By limiting individual access when it comes to your network or server, you will also be able to drastically reduce any exposure, and you will be able to have a better audit trail should anything occur. Trademarks When it comes to securing your financial transactions, it is important to own your trademark like Ken Starr of Home Comfort USA. The reason for this is a proactive trademark clearance and registration strategy can protect your business from being targeted by fraudsters that want to replicate or steal your information in broad daylight. Not only this but by having your own trademark you are drastically reducing your chances of a fraudster tricking the system and making you seem like the one who used their ideas, something that has been on the rise in recent years. Credit Cards What all digital thieves want is your money and that is why they will always target your credit cards finances first. This can be absolutely crippling for a small to medium size business because it is a direct attack on your most valuable resource; your revenue. A great way to limit your exposure on this front is to operate with multiple accounts, and certainly a minimum of two. It is also worth paying more to have your server secure any credit card details you have, especially your clients, as security and reputation are an imperative part of business success.